Top Bulls Reasons To Buy — Vote below!

Add a New Bulls Reason

Company: Northstar Realty Finance (NRF)
Current price:
Headline: (100 character max)
6 votes

  Credit Crisis lets Northstar buy assets for pennies on the dollar

As the credit crisis in residential housing causes investors to throw away all banks and finance companies, the management at Northstar (a commercial mortgage REIT) seems almost jubilant in the opportunities this market has given them to buy assets for pennies on the dollar. They own commercial mortgages and some real estate, mainly hospitals. (Imagine that, a mortgage company that owns property - because it wants to.)

Northstar stopped lending money and stopped buying mortgage securities long before most anyone else did, keeping plenty of liquidity for the storm that is taking out all those that didn't. As of their 6/4/8 conference call they still had no credit defaults and most of their mortgage securities are vintage - with loan to value of less than 80%. They increased liquidity and have been waiting for just the right time to let the bottom fall out of the market before dipping their feet to buy good performing assets at rock bottom prices that failing institutes are being forced to liquidate in order to raise capital in their effort to survive.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki